crude weekly insights – Fuel oil markets movements – Furnace oil prices trended down in India

crude flat prices sank through this week ended the week with steepest decline since April. Brent July contract futures prices ripped down as optimism about the deal to re-open SoH. Brent July contract set to expire today and marked as the largest monthly crude price decline since March 2020.

Timespreads drifted lower along with the crude benchmarks. Major crude benchmarks lost about half of their backwardation premium since the beginning of the week. The spread narrowed even more on the late week.

Inventories data extended support to oil complex this week. Massive drawings in U.S crude particularly SPR crude data rang bullish bells. Product data flagged lackluster demand from refineries.

Market Positioning data showed that the speculators were the net sellers of the major crude F&O through week ending Tuesday. Longs left the market on clear downside risk amid positive talks while short positions built up as per the data revealed by ICE.

FUEL OIL MARKETS

Fuel oil markets moved soft this week in Asia at Singapore trading window. Both HSFO and VLSFO prices moved under pressure amid easing prompt market tightness and ample regional inventories. VLSFO front month backwardation weakened considerably that reflected improved cargo availability and subdued bunker demand from key shipping hubs. HSFO fundamentals are weakened this week as refinery supplies remained healthy and demand failed to provide sufficient support. The prompt HSFO market lost a significant portion of its backwardation signaling that traders are becoming less concerned about the near term supply shortages. FO prices in India are trended to go down for the first half of June, 2026.